31st Mar 2025 07:00
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31 March 2025
GEO Exploration Limited
("GEO " or the "Company")
Interim Financial Report - Half Year Ended 31 December 2024
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FIGURE 1 - Map of Namibia showing PEL0094 | ||||
Juno Project - Western Australia
As part of the Company's transformation agenda, in August 2024, the Company announced the acquisition of a 70% interest in a joint venture ("the JV") with Callum Baxter. The JV is focused on the advancement of mineral exploration licence 08/3497 ("the Licence") located in Western Australia, in a region recognised for its rich mineral deposits.
Callum Baxter was Chief Technical Officer of Greatland Gold plc and was Chairman and CEO of Starvest plc. Callum was the key geologist in the advancement and exploration of the Havieron Gold discovery in Western Australia, one of the largest high-grade gold discoveries in Australia in the last two decades. Callum Baxter is a member of the Australian Institute of Geoscientists and the Australasian Institute of Mining and Metallurgy.
Under the terms of the Joint Venture, Geo:
- acquired an initial 70% of the licence for consideration of £200,000.
- exercised a 3 month option to purchase an additional 10% of the licence for £50,000 thus increasing Geo's interest to 80% of the licence, with Callum Baxter retaining 20%.
- is committed to a minimum expenditure of £750,000 (capital commitment) under the JV over the 12 months following completion.
- is to fund 100% of the JV expenditure up to the "Decision to Mine", after which both parties will contribute according to their JV interests.
- is the JV Manager and responsible for all exploration activities and must furnish technical reports to Callum Baxter.
- will pay up to a 5% royalty on any future production from the Licence. This royalty structure ensures that both parties benefit proportionally from the success of the project.
Following the acquisition of the additional 10% of the licence on 16 September 2024, Geo Exploration now holds 80% of the licence. The Company has subsequently applied for two further Exploration Licences, 52/4391 and 08/3744, adjacent to the licence, via its wholly owned subsidiary Juno Gold Pty Ltd. Upon approval of the applications, the total area of the Juno Project will increase from 106 square kilometres to 450 square kilometres covering multiple magnetic features.
The Project, targeting Intrusion-Related Gold Systems (IRGS), has seen significant advancements through a series of geophysical surveys, including aeromagnetic, gravity, and LiDAR data collection. These activities have been aimed at identifying and refining high-potential drill targets, with the ultimate goal of discovering large-scale gold and copper mineralisation similar to the Havieron deposit in the Paterson Province.
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FIGURE 2 - Juno Aeromagnetics and Ground Gravity |
Italian Applications
In August 2013, the Company submitted applications for four offshore exploration areas in the Southern Adriatic, which are contiguous with the Italian median lines with Croatia, Montenegro, and Albania. Following a series of appeals against the environmental decrees related to these applications, the European Court confirmed in January 2022 that the applications did not violate EU law.
In February 2019, the Italian Parliament suspended all hydrocarbon exploration activities for 18 months to evaluate their suitability under a new Plan, which came into effect in February 2022. This Plan mandates that only gas exploration is permitted, leading to a re-perimeterisation of the Company's application areas. The Italian Ministry of Ecological Transition later confirmed that the amended applications complied with the Plan.
In September 2023, the Company announced that appeals against the environmental decrees granted in its favour had been dismissed by the Council of State. These appeals were related to all four of the Company's exploration permit applications in the Southern Adriatic. There have been no updates since June 2024. The Company will now assess its options regarding the applications and make further announcements as needed |
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FIGURE 3 - Map of Permit Applications - Italy offshore |
DIRECTORS
The Directors of the Company at any time during or since the half-year are: |
Non-Executive
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Mr Brian Chu (appointed 5 December 2024) | Non-Executive Director |
Mr Andrew Draffin (retired 5 December 2024) | Non-Executive Director |
Executive
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Mr Omar Ahmad (appointed 18 September 2024) | Chief Executive Officer |
Mr Hamza Choudhry (appointed 18 September 2024) | Chief Financial Officer |
Mr Azib Khan | Chief Commercial Officer |
Ms Cecilia Yu (ceased 21 October 2024) | Executive Director |
SUBSEQUENT EVENTS
In January 2025, the Company undertook significant capital initiatives to bolster its project advancement and operational capabilities. On 7 January 2025, the Company announced a successful capital raise of £1,500,000 through the placement of 666,666,666 Ordinary Shares at a price of 0.225 pence per share. This funding has been designated to fully fund the announced work program for the Juno Project as per the RNS dated 14 August 2024, support ongoing farm-out discussions for PEL0094 in Namibia, maintain license commitments, and general working capital.
In addition to the institutional placement, the Company launched a retail offer which raised £51,050 through the issuance of 22,688,888 million new shares at 0.225 pence each.
The capital raisings reflect the Company's commitment to provide opportunities for both family office, high net worth individuals and retail investors to participate in its anticipated growth trajectory.
In February 2025, the Company announced it has applied for a new Exploration Licence, 08/3792, north of the current Exploration Licence 08/3497 in Western Australia, via its wholly owned subsidiary Juno Gold Pty Ltd. Callum Baxter, exploration geologist consulting to the Company, has identified potential exploration targets within the Licence which share geophysical similarities to the target within Exploration Licence 08/3497. The Company is confident that this addition will not only significantly enhance its presence in the region but also strengthen its vision of uncovering a world-class deposit.
In March 2025, Geo Exploration Limited received correspondence regarding potential misappropriation of funds committed by an external service provider which we understand has impacted multiple companies, including ASX-listed companies and Geo Exploration Limited. The facts of this matter are still under investigation, but initial findings suggest the period over which Geo Exploration Limited was impacted spans June 2023 to October 2023, with no impact identified post October 2023. Based on the initial findings, and the Company's legal advice Geo Exploration believes that the future possibility of a net outflow of resources embodying economic benefits in relation to this matter is low, the net impact on Geo's cash position over the affected period was immaterial. However, to be very prudent the Company discloses this as a contingent liability. Since their appointment, the current management team have prioritised strengthening corporate governance and controls, including the safeguarding of all company assets.
On 31 December 2024, the Company announced that a warrant holder had exercised 10,000,000 warrants at 0.10 pence per warrant raising £10,000. As a result, 10,000,000 Fully Paid Ordinary Shares were issued with trading of the underlying Depository Interest commencing trading on 3 January 2025. On 12 February 2025, the Company announced that it has issued the second tranche of 2,777,778 shares to the Company's media and marketing consultant for compensation of services rendered.
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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2024 |
Group For the six months ended 31 December |
2024 US$ | 2023 US$ | |
Other income | - | 305,799 |
Employee benefits expense | (332,372) | (16,401) |
Administrative expense | (162,237) | (200,966) |
Other expenses | (58,841) | (77,146) |
Depreciation and amortisation expense | (23) | (9,718) |
Exploration and business development expenses | - | (10,248) |
Foreign exchange gain (loss) | 96 | 2,007 |
Results from operating activities | (553,377) | (6,673) |
Finance income | 10,087 | 3,509 |
Net finance income | (543,290) | (3,164) |
Loss before income tax | (543,290) | (3,164) |
Tax benefit (expense) | - | - |
Loss for the period | (543,290) | (3,164) |
Other comprehensive income | ||
Items that may be reclassified subsequently to profit or loss | ||
when specific conditions are met: | ||
Exchange differences on translating foreign operations, net of tax | (119,777) | - |
Total other comprehensive income/(loss) for the period | (119,777) | - |
Total comprehensive income for the year | (663,067) | (3,164) |
Net profit attributable to: | ||
Owners of the parent entity | (543,290) | (3,164) |
(543,290) | (3,164) | |
Total comprehensive income attributable to: | ||
Owners of the parent entity | (663,067) | (3,164) |
(663,067) | (3,164) | |
Earnings per share | ||
From continuing and discontinued operations | ||
Basic earnings per share (cents) | (0.0162) | (0.0002) |
Diluted earnings per share (cents) | (0.0162) | (0.0002) |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 |
Group For the six months ended 31 December |
31 December 2024 |
| 30 June 2024 | |
US$ |
| US$ | |
Assets | |||
Current assets | |||
Cash and cash equivalents | 184,363 | 193,070 | |
Trade and other receivables | 61,585 | 24,030 | |
Other assets | 460,445 | 130,050 | |
Total current assets | 706,393 |
| 347,150 |
Non-current assets | |||
Property, plant and equipment | 2,579 | - | |
Exploration and evaluation assets | 3,278,347 | 2,017,693 | |
Total non-current assets | 3,280,926 |
| 2,017,693 |
Total assets | 3,987,319 |
| 2,364,843 |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 564,100 | 324,175 | |
Borrowings | 270,000 | - | |
Total current liabilities | 834,100 |
| 324,175 |
Total liabilities | 834,100 |
| 324,175 |
Net assets |
3,153,219 |
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2,040,668 |
Equity | |||
Issued capital | 47,227,236 | 45,451,618 | |
Reserves | 742,406 | 862,183 | |
Accumulated losses | (44,816,423) | (44,273,133) | |
Total equity | 3,153,219 |
| 2,040,668 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 |
| Issued Share Capital | Option Reserve | Foreign Currency Translation Reserve
| Accumulated losses | Total | |
$ | $ | $ | $ | $ | ||
Consolidated Group | ||||||
Six months ended 31 December 2023 | ||||||
Balance at 1 July 2023 | 44,343,531 | 283,817 | 570,410 | (43,231,872) | 1,965,886 | |
Comprehensive income | ||||||
Loss for the period | - | - | - | (3,164) | (3,164) | |
Total comprehensive income/(loss) for the period | - | - | - | (3,164) | (3,164) | |
Transactions with owners, in their capacity as owners, | ||||||
and other transfers | ||||||
Issue of shares | 629,952 | - | - | - | 629,952 | |
Transaction costs | (69,637) | - | - | - | (69,637) | |
Total transactions with owners and other transfers | 560,315 | - | - | - | 560,315 | |
Balance at 31 December 2023 | 44,903,846 | 283,817 | 570,410 | (43,235,036) | 2,523,037 | |
Six months ended 31 December 2024 | ||||||
Balance at 1 July 2024 | 45,451,618 | 291,773 | 570,410 | (44,273,133) | 2,040,668 | |
Comprehensive income | ||||||
Loss for the period | - | - | - | (543,290) | (543,290) | |
Other comprehensive income for the period | - | - | (119,777) | - | (119,777) | |
Total comprehensive income/(loss) for the period | - | - | (119,777) | (543,290) | (663,067) | |
Transactions with owners, in their capacity as owners, | ||||||
and other transactions | ||||||
Shares issued during the year | 1,852,828 | - | - | - | 1,852,828 | |
Transaction costs net of tax | (77,210) | - | - | - | (77,210) | |
Total transactions with owners and other transactions | 1,775,618 | - | - | - | 1,775,618 | |
Balance at 31 December 2024 | 47,227,236 | 291,773 | 450,633 | (44,816,423) | 3,153,219 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2024 |
Group For the six months ended 31 December |
2024 US$ | 2023 US$ | |
Cash flows from operating activities | ||
Interest received | 10,087 | 3,509 |
Payments to suppliers and employees | (375,380) | (292,549) |
Net cash generated by operating activities | (365,293) | (289,040) |
Cash flows from investing activities | ||
Payments for exploration and business development expenditure | (677,860) | (30,299) |
Payments for increment in bank guarantee | (270,000) | - |
Purchase of property, plant and equipment | (2,602) | - |
Net cash (used in) investing activities | (950,462) | (30,299) |
Cash flows from financing activities | ||
Proceeds from issue of shares | 1,114,258 | 629,952 |
Proceeds from borrowings | 270,000 | - |
Payments for capital raising costs | (77,210) | (69,637) |
Net cash provided by financing activities | 1,307,048 | 560,315 |
Net increase in cash held | (8,707) | 240,976 |
Cash and cash equivalents at beginning of financial period | 193,070 | 356,389 |
Cash and cash equivalents at end of financial period | 184,363 | 597,365 |
Ends |
Related Shares:
GEO Exploration Limited